Blackstone buys majority stake in Indian packaging firm Essel Propack

April 22 Reuters - U.S.-based Blackstone Group agreed to buy a 51 percent stake in Essel Propack Ltd , India's largest rigid plastic packaging provider on Monday (graphic).

Blackstone will buy the stake from the Ashok Goel Trust at 134 rupees per share, representing a premium of 1.1 percent over the company's Monday closing price.

Under India's takeover rules, the transaction triggered a mandatory open offer in which Blackstone, along with Epsilon BidCo Pte Ltd, to buy an additional 26 percent stake in Essel for 11.42 billion rupees$163.92 million(graphic).

The total deal value will range from $310 million to $462 million, based on the open offer. The Trust will retain a 6 percent stake in the company, Essel Propack said.

In December, Blackstone Chairman Stephen Schwarzman told the Economic Times that a reform-oriented government, weak rupee, bumper exits and new opportunities in bankruptcy and structured capital services will likely make India favourable for aggressive purchases.

($1 = 69.6700 Indian rupees)

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